Kuala Lumpur, March 31 - Malaysia will set up a $27 million fund to buy strategic know-how to fuel its biotechnology efforts, the government said on Friday, as part of plans to spend $542 million on developing the industry by 2010. Malaysia aims to at least double the number of companies in the sector to 400 by the year 2010, the government said in its Ninth Malaysia Plan.
But to be competitive, Malaysian biotechnology companies would need to identify and build upon niche products and services in appropriate parts of the global biotechnology value chain, such as in agriculture biotechnology, healthcare-related biotechnology, industrial biotechnology and bioinformatics.
"To boost research productivity and shorten the time required to bring products to market, the acquisition of platform technologies will be given emphasis," it said, announcing the establishment of a 100-million-ringgit ($27 million) fund to do this.
Malaysia's efforts to woo both domestic and foreign investment in biotechnology will be promoted under the brand name "BioNexus".
To encourage firms to commercialise their research findings, Malaysia will also set up a dedicated commercialisation fund of $27 million to provide matching grants to companies engaged in research and development, the government said.
To help create new spin-off companies, Malaysia aims to nurture biotechnology entrepreneurs, placing 50 million ringgit in a fund to develop skills in negotiation, technology, due diligence, business plan preparation and management. ($1=3.6925 ringgit)